In Year 1, VF Corporation split its stock two for one. On the day prior to the split, the stock sold for $238.40. What is the anticipated price of the stock when the split is effective? Round your answer to the nearest cent. $ On the day that the split was effective, VF stock closed at $119.70. What was the change in the price of the stock? Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.
In Year 1, VF Corporation split its stock two for one. On the day prior to the split, the stock sold for $238.40. What is the anticipated price of the stock when the split is effective? Round your answer to the nearest cent. $ On the day that the split was effective, VF stock closed at $119.70. What was the change in the price of the stock? Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In Year 1, VF Corporation split its stock two for one. On the day prior to the split, the stock sold for $238.40. What is the anticipated price of the stock when the split is effective? Round your answer to the nearest cent.
$
On the day that the split was effective, VF stock closed at $119.70. What was the change in the price of the stock? Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.
$
Expert Solution
Step 1
Stock Split:
It represents the increase in the outstanding shares of a company for the purpose of boosting liquidity. As the outstanding shares increase, the price of the share falls proportionately to the increase in outstanding shares.
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